While tightening the purse-strings and saving can be a good move, not investing that money for the future is a wasted opportunity. Missing this crucial period to maximise returns, potential capital growth and the power of compound interest, not to mention natural market growth, is potentially the difference between a comfortable retirement or a struggle.

It’s a pretty simple calculation then, if at 45 you’re accustomed to an annual household income of £100k and plan to spend 30 years in retirement, you’ll need:

100k x 2/3 x 30 = £1,980,000 (£5,500pcm)

Or for the less lavish of us…

60k x 2/3 x 30 = £1,188,000 (£3,300pcm)

Regardless of the amount you’re used to, more of us are opting to retire earlier and live longer into retirement. This means it’s crucial to get the timing right on when and where you invest so you can fund your lifestyle choice.

If you’re putting money into savings or other funds, you’ll struggle to provide long-term passive income outside of compound interest, meaning those seeking something more substantial will need to find an alternative monthly income stream via investment.